iStrategy AMS 2011 | Penny Power, Founder, Ecademy

Penny Power @pennypower#ecademy

Building Social Capital

Founder of Ecademy.com

Understanding ‘social’ and it’s impact on business leadership and branding

My background

1998

Many mistakesTransactional attitudes do not workTried to make money from the community!

Do leaders of businesses understand the word ‘social’?

Is this a repeat of ‘customer is king’ but

“Our Customer Services department have the patience to look after them”

Social Media is that ‘marketing thing’

I want to sell to you

Business leaders are terrified of this ‘social world’

They HAVE to lose their Transactional Mindset

Communities -

• Births• Deaths• Marriages

Chinese proverb

“To know and not to do is not YET to

know”

Lessons being learned by CEO’s the hard way

“I’d like my life back” – a defining moment

Beyond customer service – this message taught us all that…

It is not about YOU, it is about US

Communities of people are asking for something but not everyone is listening to them

Corporate’s speak with their heads

• Consumers and Small Businesses listen with their hearts

This goes way beyond ‘engagement’

• Engagement is a TASK• It can be fake• It can be delegated

• Building Communities is a shared value and a reason for existing

• Building communities creates a new form of capital in a company• Social Capital

‘Communities’ are a brands unfair advantage

• Very different to a network• Two way communication• Listen, adapt, innovate, survive, thrive• Forgive• Loyal• Belonging• Family• Shared values• Advocacy

Creating our ‘shared values’

Safe and Supported

My lessons

My lessons

• Communities don’t want to be transacted with

My lessons

• Communities don’t want to be transacted with• They only want to be supported

My lessons

• Communities don’t want to be transacted with• They only want to be supported• They want their own agenda

My lessons

• Communities don’t want to be transacted with• They only want to be supported• They want their own agenda• You cannot control them

My lessons

• Communities don’t want to be transacted with• They only want to be supported• They want their own agenda• You cannot control them• They want a lot for free

My lessons

• Communities don’t want to be transacted with• They only want to be supported• They want their own agenda• You cannot control them• They want a lot for free• They have an enormous power

My lessons

• Communities don’t want to be transacted with• They only want to be supported• They want their own agenda• You cannot control them• They want a lot for free• They have an enormous power• They are very hard to monetize

My lessons

• Communities don’t want to be transacted with• They only want to be supported• They want their own agenda• You cannot control them• They want a lot for free• They have an enormous power• They are very hard to monetize• You cannot see them as customers

My lessons

• Communities don’t want to be transacted with• They only want to be supported• They want their own agenda• You cannot control them• They want a lot for free• They have an enormous power• They are very hard to monetize• You cannot see them as customers• Loyalty means they will criticize

But they are very powerful for your brand

They build your

Social Capital

Social Capital is the glue in which to build a brand and create followers

Create yourSocial Capital

Image taken from Alison

MitchellLiverpool

University


Shared Commitment to

belonging



MitchellLiverpool

University



belongingShared norms of behaviour



MitchellLiverpool

University




Effective communication channels



MitchellLiverpool

University





Formal and Informal networks



MitchellLiverpool

University







Reciprocity and mutuality


MitchellLiverpool

University







Reciprocity and mutuality

Trust


MitchellLiverpool

University

The power of unconditional Love as a child

Now we have to engage support and care with no conditions and no hidden agenda

“I support my friends”


TJ – aged 13 –600 in network


Ross – aged 16 800 in network



Hannah – aged 183000 in network

Ross – aged 16 800 in network


The trick is to learn how to monetize social capital

• What are the problems that your community members have?

• What do they want YOU to serve them?• What are their needs that you can support?• Who else do you need to collaborate with to

solve problems for them?• What is it that your community values about

you?

Creating followers

"the goal is NOT to sell what you have to people who need what you have…………

The goal is to get people to BELIEVE WHAT YOU BELIEVE”

Simon Sinek ‘Start with WHY’

"If you want to build a ship, don't drum up the people to

gather wood, divide the work, and give orders. Instead, teach them to yearn for the vast and

endless sea”

Antoine De Saint-Exupery, Author of The Little Prince.

Building Community requires

• Devotion• Heart• Passion• Understanding• Belief• Thought leadership• Empathy• Inter-dependence

Community building will become a ‘Boardroom’ priority

Globalization has given the shareholders too much choice – when an economy is not thriving they move awayCSR is just a line on a P&L, not led with passionCSR is legally expectedLegal obligation has taken away the competitive advantage of being a ‘good’ companyLeaders have to decide who they care for and whyLeaders will need to communicate and show that they careLeaders will have to lead with their heart!!!!

Community building will become a ‘Boardroom’ priority

Corporate Social Responsibility has broken down the ‘free will’ of caring

Globalization has given the shareholders too much choice – when an economy is not thriving they move awayCSR is just a line on a P&L, not led with passionCSR is legally expectedLegal obligation has taken away the competitive advantage of being a ‘good’ companyLeaders have to decide who they care for and whyLeaders will need to communicate and show that they careLeaders will have to lead with their heart!!!!

The economic benefits of social capital growth

• Reduces transaction costs• Buyers come to buy

• Creates new forms of information exchange • Increases innovation/live R&D • Increases loyalty to the brand• Creates a ‘connection’• Provides feedback• Ensures engagement

Where do you start?

Where do you start?

• Brands need to understand the demographic they serve and the needs of that demographic

Where do you start?


• The board needs to agree on their shared values

Where do you start?



• Recruitment has to include these shared values

Where do you start?



• Recruitment has to include these shared values

• The company must seek to provide greater contribution to the local or global communities

How Ecademy achieves this


• We listen and engage across all platforms


• We listen and engage across all platforms• We are embedded in the community through the blogs and

messaging



messaging• We meet offline



messaging• We meet offline • We understand the plight and lives of SME’s



messaging• We meet offline • We understand the plight and lives of SME’s• We empathize



messaging• We meet offline • We understand the plight and lives of SME’s• We empathize• We share



messaging• We meet offline • We understand the plight and lives of SME’s• We empathize• We share• We are open and encourage random



messaging• We meet offline • We understand the plight and lives of SME’s• We empathize• We share• We are open and encourage random• We encourage shared values



messaging• We meet offline • We understand the plight and lives of SME’s• We empathize• We share• We are open and encourage random• We encourage shared values• We take responsibility



messaging• We meet offline • We understand the plight and lives of SME’s• We empathize• We share• We are open and encourage random• We encourage shared values• We take responsibility• We ‘parent’



messaging• We meet offline • We understand the plight and lives of SME’s• We empathize• We share• We are open and encourage random• We encourage shared values• We take responsibility• We ‘parent’• We are a family



messaging• We meet offline • We understand the plight and lives of SME’s• We empathize• We share• We are open and encourage random• We encourage shared values• We take responsibility• We ‘parent’• We are a family

“Community First, Transaction Second”

Seeking solutions together within an SME Community

Thank you everyone

223 comments

7,582 views

The taxi driver

The banks as a case study

• Will they return to relationship banking

OR

Will the social networks become banks….

Relationship algorithms

Klout, Peer Index, Empire Avenue

Klout, Peer Index, Empire Avenue

Social Capital games for measuring influence

Are they just games??

The power of having followers and influence

Followers grow your social capital

• Your ability to innovate• Your reputation• Your brand• Your sense of belonging• Loyalty to the brand• Advocacy• Your market position• They talk about you

Creating ‘followers’ is a different skill set and a different intention

intention

Does the Pillow Man sell Pillows OR

“Does he sell the beauty and gift of sleep “

Would you follow someone who sells pillows?

• Would you follow someone who wants to improve sleep for all?

The social world demands intention to be for the good of all

• What good is a brand doing?• How does it improve the lives of others?• Why are they worthy of being followed?• What do I gain by following their message?• What do my followers gain?


Are you transactional?

Suspect I want to sell to you


SuspectProspect



SuspectProspectCustomer



Trapping customers

I love my network of friends

Are you ‘social’?

StrangerI love my network of friends


StrangerFriend I love my

network of friends


StrangerFriendFollower

I love my network of friends


Attract Followers

Social thinking

Maslow – hierarchy of needs

What if you have to have self actualisation first!

Why should this matter in a global economy

• Consumers have choice• Consumers share their experience

• Followers have passion• Followers share their beliefs

Ecademy have created followers around our Manifesto#DBBM

My legacy - Social Capital for all

A final thought

• Social Responsibility of Leaders to enable their staff to build their own brand and networks

• Aging population• No job security• Pensions - ?????• Healthcare - ????

Social Media Builds your Social Capital

Thank youPlease stay in touch

@pennypower

iStrategy AMS 2011 | Penny Power, Founder, Ecademy

Business

Transcript of iStrategy AMS 2011 | Penny Power, Founder, Ecademy